Amazon.com Annual
Report Project
Pedro Quintana
ACG 2021
PART ONE
Corporation Information
Name of Corporation: Amazon.com Inc
Principle product or service: Retail-Catalog &
Mail-Order Houses
Stock Market on which shares are tradedNasdaqGS
Price of a common share on date- $307.55
Number of shares traded on date- 4,543,264
PART ONE
Industry
 What’s the chief industry in this firm? – Retail-Catalog
& Mail-Order houses.
 Few competitors- Apple( AAPL), Barnes & Noble Inc.
(BKS), Wal-Mart.com USA, LLC(PVT1), and eBay
Inc.(EBAY).
 Is amazon a growth or mature industry? – Amazon.com
is a mature industry by the fact that it has passed both
the emerging and the growth phases of industry growth.
PART ONE
Management Information
Name of Chief Executive Officer CEOMr. Jeffrey P. Bezos
Name of Chief Financial Officer CFOMr. Thomas J. Szkutak
Total compensation for most recent year
for CEO- $1.68 million.
PART ONE
Quarterly Reports
Balance sheet date of quarterly ReportsSeptember 30th, 2012
Net Income- $(274) millions
 Total Revenue- $13,806 millions
Net cash flow Increase- $2,335 in millions
PART ONE
Daily stock closing prices
Amazon closing prices
350
300
Share price
250
200
150
close
100
50
0
date
PART ONE
Volume of shares traded
Amazon volume of shares traded
16000000
14000000
Share volume
12000000
10000000
Series1
8000000
Series2
6000000
4000000
2000000
0
7/12/12
8/12/12
9/12/12 10/12/12 11/12/12 12/12/12 1/12/13
Date
2/12/13 3/12/13
4/12/13
5/12/13
6/12/13
Part one
Executive Compensation Table
Part two
Auditors Information
 Name of Audit Firm- Ernst & Young
 Date of Auditor’s report- January 29th, 2013
Part two
Annual Financial Statement
Information
 Dates of financial statements(Balance sheet dates)December 31, 2012 and 2011.
 Number of years covered (income Statements)- Four years:
2010, 2011, 2012.
Part two
Analysis of Balance sheet
 Total Assets- For 2011: $25,278 and for 2012: $32,555
 Total Liabilities- For 2011: $17,521 and for 2012: $24,363.
 Inventory flow assumption- LIFO
 Depreciation method- Straight-line method.
Part two
Ratio analysis?? CONFUSED
 Primary (basic) earning per shareearning per share = Profit- dividend. See notes on this page
first, you need to find the annual report: ( it is on the instruction page of the project: I give
you the following link: http://www.sec.gov/cgibin/viewer?action=view&cik=1018724&accession_number=0001193125-13028520&xbrl_type=v
 The formula is on the book ( or you can google the name of the ratio and Investopedia
will usually provide the formular). I will give you two examples here.
 Primary (Basic) earnings per share = ( net income- dividend on preferred stock) /
average outstanding shares
 You do not have to calculate this one, it gives you on the consolidated statements of
operations ( after the line of net income)
 It was 0.09 on Dec31, 2012
 Another example is current ratio= current asset/ current liability
 On Dec 31,2012, on consolidated balance sheets, current asset is 21296 million,
current liability is 19002 million. So you can calculate current ratio using the above
formula.
Part two
Analysis of the cash flow
statement.
 Was there a net cash inflow or outflow? There was a net
cash outflow of $(274) million
 Where did the firm primarily spend cash? Changes in
inventory, capital expenditures, and sale purchase of stock.
 From where did this cash come from? From Revenue,
Retained earnings, and investments.
Part two
Analysis of risk
 List some economy and industry-wide risk factors:
 1. Intense competition.
 2. Expansion places a significant strain on their
management, personnel, and operations,
 3. Expansion into new products, services, and geographic
regions.
 4. Fluctuation in their operating results and growth rates.
Part two
International
 Does the firm have significant foreign sales? – Yes
 Does the firm have significant foreign suppliers? – Yes
 With what countries does the firm have significant business
relations with? All over the world, but in the year of 2012 Italy,
China, and Spain.
 Is the firm vulnerable to currency fluctuations? – Yes
 Would you buy, sell, or hold this company? HOLD